The United States is at a dangerous juncture: Manufacturing jobs are on the rise, but the growth is still fragile. Given the hypercompetitive nature of global manufacturing, it wouldn't take much to kill this momentum and put the U.S. back to where it was a couple of years ago. That's why it's critical for American manufacturers to maximize the return on all their assets — including their workforces.
U.S. manufacturers have always been at the forefront in making efficient use of physical capital, but human capital is a different story. It's not much of an exaggeration to say that for decades, companies have thought of workers as essentially interchangeable, somewhat like machine parts — if one doesn't work out, replace it with another. Managers typically assume that a worker who meets minimum qualifications can be taught pretty much any job in a short time.
If companies continue to follow that approach, they risk becoming less competitive and putting an early end to the growth of the American manufacturing sector, which has generated more than 330,000 new production jobs over the past two years. Instead, they need to recognize that not everyone is cut out to work on today's factory floor.
Production lines don't look much the way they used to. Robots and computer-operated tools are everywhere. But that doesn't mean human workers are less valuable — quite the opposite. In this environment, profits come from the company's ability to make the best use of technology to flexibly create high-quality products with continual process improvement and few accidents. Making all that happen is ultimately the responsibility of the army of one who is monitoring the robot, recalibrating as needed, watching for signs of trouble, troubleshooting, making timely technical adjustments, and proposing new and better ways of doing things. Whether the output is cars, furniture, plumbing supplies, or optical products, manufacturers increasingly need bright, technically sophisticated, adaptable, engaged workers who are self-motivated to learn. In other words, they need a world-class workforce.
To get this workforce, companies need to be as forward-thinking about their talent sourcing, hiring, and retention as they are about the technology on their production lines. That means carefully defining what capabilities are required in each hire, creating methods for determining which candidates will function best, establishing effective performance measures, and ensuring continual improvement of talent-management processes.
Of particular importance is the hire. A high hit rate on getting the right people the first time will set U.S. companies apart in the global marketplace. To achieve that, companies should be using new hiring processes that are technology driven and more relevant than the unstructured interview and résumé review of yesterday. A number of automated pre-employment assessment methods are available that include sophisticated simulations designed to measure the most relevant skills for working on a technology-driven production line. But many companies still don't use these systems; although manufacturers have become expert at process automation, most are still novices when it comes to automating the hiring process.
I'm always amazed at how many businesspeople believe the accepted wisdom that in manufacturing, American workers are a liability — that compared with their counterparts in China or India they're expensive and unmotivated. That's simply not true. The recent economic hardships have made the U.S. workforce hungry — hungry for stable, well-paying jobs, hungry for training, and hungry to compete at a global level.
For manufacturers, the key to success is thinking of the U.S. workforce not as a liability but as a competitive asset. Companies that learn to hire and partner with an engaged, savvy workforce will ensure a viable American manufacturing sector and prepare the way for long-term growth.
This post is part of the HBR Insight Center on American Competitiveness.
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Tuesday, March 6, 2012
Wednesday, February 29, 2012
FDIC: U.S. Banks FY Net Income Highest in Five Years
In its latest quarterly report on U.S. banks, the FDIC said lower provisions for loan losses, reflecting an improving trend in asset quality, lifted fourth-quarter net income of FDIC-insured U.S. banks. Fourth-quarter earnings totaled $26.3 billion, an increase of $4.9 billion (23.1%) compared with the same period of 2010.
Insured institutions set aside $19.5 billion in provisions for loan losses in the fourth quarter, a decline of $13.1 billion (40.1%) from fourth quarter 2010. The FDIC also noted that overall revenues continue to exhibit weakness for the third time in the last four quarters, with net operating revenue posting a year-over-year decline caused primarily by a $4.4 billion reduction in non-interest income.
The regulator said full-year 2011 net income rose to a five-year high. Net income totaled $119.5 billion, an increase of $34 billion (39.8%) from full-year 2010 earnings. This is the highest annual net income total since the industry earned $145.2 billion in 2006. The improvement in full-year net income was made possible by an $81.1 billion reduction in loan loss provisions.
To read the full FDIC Quarterly Banking Profile, click here.
Insured institutions set aside $19.5 billion in provisions for loan losses in the fourth quarter, a decline of $13.1 billion (40.1%) from fourth quarter 2010. The FDIC also noted that overall revenues continue to exhibit weakness for the third time in the last four quarters, with net operating revenue posting a year-over-year decline caused primarily by a $4.4 billion reduction in non-interest income.
The regulator said full-year 2011 net income rose to a five-year high. Net income totaled $119.5 billion, an increase of $34 billion (39.8%) from full-year 2010 earnings. This is the highest annual net income total since the industry earned $145.2 billion in 2006. The improvement in full-year net income was made possible by an $81.1 billion reduction in loan loss provisions.
To read the full FDIC Quarterly Banking Profile, click here.
Why America Will Become The Next Comsumer Electronic Powerhouse.
By computer, he's not not talking about smart devices like the Nest thermostat, which are mostly a few microprocessors with a very simple embedded OS and maybe a wireless antenna so you can tap into them via the Web.
He's talking about devices with a complete operating system and an actual user interface -- fully interactive, and able to run applications from third parties.
It has already started with TV. Apple, Google, Microsoft, and a bunch of startups like Boxee are changing the way we interact with video on our television sets. Instead of a simple channel changer, we now have on-screen menus with video from all kinds of sources, voice and gesture controls from Microsoft (and soon from Apple), and -- yes -- apps.
He believes this kind of interactivity will soon be seen in many other kinds of devices, from things you wear on your body (watches, heart rate monitors) to the dashboard of your car.
His proof? The transition from cell phones to smart phones.
A decade ago, the value of a cell phone was entirely in the hardware, which was made mostly by companies from outside the U.S. (Qualcomm being the big exception).
Now, it's almost entirely in the software -- both platform software from Apple and Google (mostly), and application software from big companies like Facebook and Amazon and countless startups.
This is probably the same reasoning that Google is using as it makes its big hardware play. We've been skeptical about the company's chances for success -- and today's report from GigaOM that Google TV has less than 1 million active users after more than a year on the market increases our skepticism further. But at least Google isn't chasing after some random whim. Other smart people in Silicon Valley are on to the same idea.
It also explains why big old computer companies like HP aren't quite so eager to give up their consumer hardware lines. Even if the old "personal computer" is dying, the basics of personal computing are going to be everywhere.
At any rate, this investor controls more than $1 billion in funds, so expect an influx of money into this space in the coming year.
He's talking about devices with a complete operating system and an actual user interface -- fully interactive, and able to run applications from third parties.
It has already started with TV. Apple, Google, Microsoft, and a bunch of startups like Boxee are changing the way we interact with video on our television sets. Instead of a simple channel changer, we now have on-screen menus with video from all kinds of sources, voice and gesture controls from Microsoft (and soon from Apple), and -- yes -- apps.
He believes this kind of interactivity will soon be seen in many other kinds of devices, from things you wear on your body (watches, heart rate monitors) to the dashboard of your car.
His proof? The transition from cell phones to smart phones.
A decade ago, the value of a cell phone was entirely in the hardware, which was made mostly by companies from outside the U.S. (Qualcomm being the big exception).
Now, it's almost entirely in the software -- both platform software from Apple and Google (mostly), and application software from big companies like Facebook and Amazon and countless startups.
This is probably the same reasoning that Google is using as it makes its big hardware play. We've been skeptical about the company's chances for success -- and today's report from GigaOM that Google TV has less than 1 million active users after more than a year on the market increases our skepticism further. But at least Google isn't chasing after some random whim. Other smart people in Silicon Valley are on to the same idea.
It also explains why big old computer companies like HP aren't quite so eager to give up their consumer hardware lines. Even if the old "personal computer" is dying, the basics of personal computing are going to be everywhere.
At any rate, this investor controls more than $1 billion in funds, so expect an influx of money into this space in the coming year.
Author: Matt Rosoff
http://www.businessinsider.com/why-america-will-be-the-next-consumer-electronics-powerhouse-2012-2?utm_source=alerts&nr_email_referer=1
He's talking about devices with a complete operating system and an actual user interface -- fully interactive, and able to run applications from third parties.
It has already started with TV. Apple, Google, Microsoft, and a bunch of startups like Boxee are changing the way we interact with video on our television sets. Instead of a simple channel changer, we now have on-screen menus with video from all kinds of sources, voice and gesture controls from Microsoft (and soon from Apple), and -- yes -- apps.
He believes this kind of interactivity will soon be seen in many other kinds of devices, from things you wear on your body (watches, heart rate monitors) to the dashboard of your car.
His proof? The transition from cell phones to smart phones.
A decade ago, the value of a cell phone was entirely in the hardware, which was made mostly by companies from outside the U.S. (Qualcomm being the big exception).
Now, it's almost entirely in the software -- both platform software from Apple and Google (mostly), and application software from big companies like Facebook and Amazon and countless startups.
This is probably the same reasoning that Google is using as it makes its big hardware play. We've been skeptical about the company's chances for success -- and today's report from GigaOM that Google TV has less than 1 million active users after more than a year on the market increases our skepticism further. But at least Google isn't chasing after some random whim. Other smart people in Silicon Valley are on to the same idea.
It also explains why big old computer companies like HP aren't quite so eager to give up their consumer hardware lines. Even if the old "personal computer" is dying, the basics of personal computing are going to be everywhere.
At any rate, this investor controls more than $1 billion in funds, so expect an influx of money into this space in the coming year.
He's talking about devices with a complete operating system and an actual user interface -- fully interactive, and able to run applications from third parties.
It has already started with TV. Apple, Google, Microsoft, and a bunch of startups like Boxee are changing the way we interact with video on our television sets. Instead of a simple channel changer, we now have on-screen menus with video from all kinds of sources, voice and gesture controls from Microsoft (and soon from Apple), and -- yes -- apps.
He believes this kind of interactivity will soon be seen in many other kinds of devices, from things you wear on your body (watches, heart rate monitors) to the dashboard of your car.
His proof? The transition from cell phones to smart phones.
A decade ago, the value of a cell phone was entirely in the hardware, which was made mostly by companies from outside the U.S. (Qualcomm being the big exception).
Now, it's almost entirely in the software -- both platform software from Apple and Google (mostly), and application software from big companies like Facebook and Amazon and countless startups.
This is probably the same reasoning that Google is using as it makes its big hardware play. We've been skeptical about the company's chances for success -- and today's report from GigaOM that Google TV has less than 1 million active users after more than a year on the market increases our skepticism further. But at least Google isn't chasing after some random whim. Other smart people in Silicon Valley are on to the same idea.
It also explains why big old computer companies like HP aren't quite so eager to give up their consumer hardware lines. Even if the old "personal computer" is dying, the basics of personal computing are going to be everywhere.
At any rate, this investor controls more than $1 billion in funds, so expect an influx of money into this space in the coming year.
Author: Matt Rosoff
http://www.businessinsider.com/why-america-will-be-the-next-consumer-electronics-powerhouse-2012-2?utm_source=alerts&nr_email_referer=1
Tuesday, February 21, 2012
Make It In America: Manufacturing Matters
Make It In America: Manufacturing Matters
Officials Declare “This is the Moment” for Manufacturing. Manufacturing got some love on Capitol Hill on Valentine’s Day.
Representative John Garamendi (D-CA), Representative Paul Tonko (D-NY) and Representative Jason Altmire (D-PA) discussed the President’s 2013 budget proposal. And manufacturing is written all over it. It’s seen as one of the ways to bring America back to the leading edge of the world’s economies.
Here are some favorite excerpts from the discussion:
“We care about manufacturing, we care about small and medium-sized businesses, and that we are going to see that as the springboard to the economic recovery.”
“We have to keep our eye on this particular prize, and that's rebuilding the American manufacturing sector.”
“This is the moment for us to move forward by reigniting the American Dream, doing it through small and medium-sized business, the pulse of the American enterprise, investing in those dreamers, those movers, those builders, those entrepreneurs, and then resulting in a thriving middle class."
“We appreciate the Representatives for their thoughtful discussion of Manufacturing in America, including the contributions of the MEP program.”
“Over the last year, my colleagues and I have been talking about the key ladders to success, those things that create opportunity in America. And certainly, they're education, the research, the manufacturing, the infrastructure, and the opportunities that come with them.”
“Our colleagues understand the relationship that exists between manufacturing and R&D, research and development. And it's critical that we look at those together, because of the discussion that we're having in this country about why, over the past several decades, we've lost so much in manufacturing.”
“We have to continue to make that investment in R&D because, if we don't do it, other countries will--and they are.”
“And if we expect to compete in a global economy, if we expect to get back our lead in manufacturing, which we are starting to do, it has to begin at that first stage of innovation, of research and development, creating new products, leading to new ways of manufacturing.”
A full transcript of the discussion can be found on the attached link.
http://capitolwords.org/date/2012/02/14/H715_make-it-in-america-manufacturing-matters/
Officials Declare “This is the Moment” for Manufacturing. Manufacturing got some love on Capitol Hill on Valentine’s Day.
Representative John Garamendi (D-CA), Representative Paul Tonko (D-NY) and Representative Jason Altmire (D-PA) discussed the President’s 2013 budget proposal. And manufacturing is written all over it. It’s seen as one of the ways to bring America back to the leading edge of the world’s economies.
Here are some favorite excerpts from the discussion:
“We care about manufacturing, we care about small and medium-sized businesses, and that we are going to see that as the springboard to the economic recovery.”
“We have to keep our eye on this particular prize, and that's rebuilding the American manufacturing sector.”
“This is the moment for us to move forward by reigniting the American Dream, doing it through small and medium-sized business, the pulse of the American enterprise, investing in those dreamers, those movers, those builders, those entrepreneurs, and then resulting in a thriving middle class."
“We appreciate the Representatives for their thoughtful discussion of Manufacturing in America, including the contributions of the MEP program.”
“Over the last year, my colleagues and I have been talking about the key ladders to success, those things that create opportunity in America. And certainly, they're education, the research, the manufacturing, the infrastructure, and the opportunities that come with them.”
“Our colleagues understand the relationship that exists between manufacturing and R&D, research and development. And it's critical that we look at those together, because of the discussion that we're having in this country about why, over the past several decades, we've lost so much in manufacturing.”
“We have to continue to make that investment in R&D because, if we don't do it, other countries will--and they are.”
“And if we expect to compete in a global economy, if we expect to get back our lead in manufacturing, which we are starting to do, it has to begin at that first stage of innovation, of research and development, creating new products, leading to new ways of manufacturing.”
A full transcript of the discussion can be found on the attached link.
http://capitolwords.org/date/2012/02/14/H715_make-it-in-america-manufacturing-matters/
Tuesday, February 14, 2012
Characteristics of The Right Funding Partner
Outside investors can propel your business and create a foundation for long-term success. The trick is finding the right ones.
Every CEO of a growth company is faced with a primary challenge: funding that growth. In some cases, growing businesses can partially rely on customers (in the form of working capital), bank loans and founders’ equity. You may be tempted to accept funding from any interested investor. But there is a huge benefit to finding the right funding partner —the ones that can propel your business and create an environment for long-term success.
We will only take on your funding project needs if our funding committee members have three key characteristics:
1.Deep knowledge and interest in your product or industry
2.Experience with the unique challenges and idiosyncrasies of your growing business
3.An interest and ability to actively help you to grow the company and to be vested in its success
Have you built a win-win partnership with your working capital provider? Are you currently looking for the ideal funding group? Share your thoughts with us at iam.aif@andicefunding.com
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